Under U.S. GAAP, the balance sheet should be prepared as of:

• A. A specific point in time (a particular date).
• B. A period of time (e.g., for the year ended December 31).
• C. Only after the income statement has been prepared and closed to retained earnings.
• D. Only at the end of each month, regardless of the company’s reporting period.

Answer: (A)

Verified step by step guidance

1. Understand that the balance sheet is a financial statement that reports a company's financial position, including assets, liabilities, and equity.
2. Recall that under U.S. GAAP, the balance sheet is designed to show the financial position at a specific moment, not over a range of time.
3. Recognize that unlike the income statement, which covers a period of time (e.g., 'for the year ended December 31'), the balance sheet is prepared as of a particular date.
4. Note that the balance sheet is not dependent on the income statement being prepared or closed to retained earnings before it can be prepared; it stands independently as a snapshot.
5. Conclude that the correct approach is to prepare the balance sheet as of a specific point in time, such as December 31, reflecting the company's financial position on that exact date.